The downside of price cuts (for an existing owner)
Yes, price cuts are benefitial to the company and paves way for more sales. Price cuts bring the vehicle into the bracket of people with lesser budgets.
Now lets look at the price-drop from an owner's perspective who has just paid top dollar for his motor before the price-cut. Lets take the case of the Honda Jazz, the most widely known car for its price drop. Aria joins the bandwagon now. If you are owner who have purchased a honda jazz at "pre" price-cut prices, what all do you lose ?